The Supreme Court heard oral arguments in Department of Labor v. Sun Valley Orchards, LLC, on November 10, 2026. The Court will decide whether the Department of Labor’s (DOL) fine for employers’ noncompliance with H-2A visa program rules is within its mandate. The DOL has imposed fines through its own administrative judges for many years. In this case, a New Jersey farm seeks a trial before a federal court.
Background
Sun Valley Orchards is a family owned vegetable farm. They used the H-2A visa program to employ workers in 2015. After reviewing the case, the DOL found that the farm failed to meet many program requirements related to employees’ housing, food, and wages. The DOL imposed civil penalties of $212,250 and ordered the farm to pay back wages totaling $369,703. An administrative law judge found most of the DOL’s findings in favor of the DOL, and the Administrative Review Board affirmed the decision.
Sun Valley sued the DOL in federal court in 2021, arguing that this was a case similar to a dispute between an employer and an employee (a case which would be heard in an Article III court). The District Court ruled in favor of the DOL. The Third Circuit ruled in favor of Sun Valley, citing the Supreme Court’s Jarkesy decision (2024). The DOL appealed to the Supreme Court, which granted cert in April 2026.
The DOL argued the case falls within the “public rights” doctrine. That would allow DOL to adjudicate immigration cases. DOL argues it is trying to enforce the visa program, so that’s the context in which it would be making those decisions.
What This Means For Employers
If the Supreme Court rules for the DOL, nothing will change for the H-2A program. If it rules in favor of Sun Valley, the DOL will have to take employers to federal court to seek penalties. This could open the door to more cases challenging other departments’ ability to impose fines outside of court.
We can expect a ruling by the end of June 2027. Until then, H-2A employers should continue to follow program rules.
As always, ILBSG actively monitors ongoing U.S. immigration news. If you have questions about any U.S. immigration related issue, contact us. Working with an experienced attorney ensures you get the right advice based on the most recent laws. In an ever-evolving immigration policy landscape, it’s particularly critical you get the right advice.